The Asian Development Bank has approved a US$1 million concessional loan to reinforce one of Vietnam's oldest and largest irrigation and drainage system, located in the heart of the Red-Thai Binh River basin.
The loan will go to the construction of a campus for a Water Resources University (WRU), the only university in Vietnam to have a full programme of subjects to educate water engineers.
The Red River Delta is one of Vietnam’s key economic hubs. Around 560,000 people living in the surrounding area of the 50-year old Bac Hung Hai irrigation and drainage system are expected to benefit from improved irrigation.
A total of 1.9 million people in the area will benefit from improved drainage and reduced risk of flooding.
The loan will fund education facilities to train engineers in water-related fields that are needed to meet the heightened demand of a rapidly growing economy.
The loan will have a maturity of 32 years with a grace period of eight years and an annual interest rate of 1 percent during the grace period and 1.5 percent thereafter.
Agence Française de Developpement will co-finance the project with a loan of EUR20 million. The government of Viet Nam will provide US$51 million for the project.